United Parcel Service, Inc. (UPS) Earnings Preview

Post by:

United Parcel Service, Inc. (UPS) is a package delivery company providing global supply chain management solutions and delivers packages in over 220 countries and territories providing control and visibility of customer’s inventories. The stock is currently trading around $95.04 at the lower end of its 52 week range of $94.05-$114.40. The stock has been under performing the market this year falling 14.54% year to date. UPS is scheduled to report earnings before the opening bell tomorrow, and the stock is up $0.29 or 0.31% on the session ahead of the close.

Over the past 12 quarters UPS has rallied on earnings day 7 times with an average move of 2.12%. The stock appears bearish on a chart going into the release having traded below or in the Ichimoku Cloud since mid-June on the daily bars. Over the past 12 quarters UPS has rallied from earnings to the nearest options expiration 6 times with an average move of 2.45%. The stock looks as if it could continue today’s trend and rip to the upside after receiving a lot of support from the 52 week low. Investors expect to see growth of 6% to 12% in EPS based off of the estimate UPS has given. With strong earnings rallies, support from the 52-week low and positive news pertaining to earnings it is hard to justify anything, but a long position on UPS.

The options market is currently implying a move of around $3.64 or 3.8% in UPS by this Friday’s close giving us targets of $91.54 and $98.82.

Trade: Buy this week’s 97-98 Vertical call spread for $0.28
Risk: $28 per lot
Reward: $72 per lot
Break Even: $97.28

Andrew Keene

Submit a Comment

Your email address will not be published. Required fields are marked *



Join our VIP Notification Service and Be Among The First To Know About All The Latest Trade Ideas, Trading Tips, Highly Profit Potential Trades, and Market Predictions From Our Team of Expert Traders!
Join Text Messaging List
By providing your mobile phone number and clicking on the above button, you agree to receive automated promotional messages from us. By opting into our SMS Program, you agree to our Terms and Conditions and Privacy Policy  
You have to agree on terms in order to proceed to the subscription.


Get Our Free Daily Trading Videos

Delivered To your Inbox

By submitting your information you agree to our Terms of Service and our Privacy Policy